Case Analysis Report Sergio Marchionne leading change in Fiat and Chrysler

The firms have to compete in order to survive (d’Aloisio, 2016. Pg. Only a few of the businesses manage to survive. On top of that, the industry is fully capital intensive. The CEOs in this industry are quite aware that change has to occur and especially on leadership in order to promote innovation within the setting of the organization. Therefore, in order to change the culture and leadership of an organization, it is good to understand the existing the culture and leadership, then define the strategic directions to undertake and then mobilize the respective members to change their behavior (Caiazza et al. Pg. Due to changes in the level of competition, new entrants in the market and innovation that has been as a result of technology necessitate organizations to take actions in order to remain in the market.

The extent of innovation in an organization is directly correlated with the kind of leadership that leaders adopt. This conceptual paper critically analyses Sergio Marchionne leading change in Fiat and Chrysler. Within a period of two years, he was in a position to return the struggling Italian automotive industry to profitability. Besides that, due to economic conditions that were witnessed in 2008/2009, Chrysler caught in the financial crisis that oversaw big businesses fall. The leadership in the organization can be blamed for the case. In order to address the issues in the company, Marchione had also to take the role to transform Chrysler- a U. S. The change was only through transforming the leadership within the organization, promoting innovative culture, advocating CSR for every person and the well being of every person by accommodating them.

The two companies were making use of traditional approaches to leadership. Analysis In the year 2004, Fiat automobiles were making great losses. The company had losses that amount to almost $1. 3 billion thus it portrayed a bad reputation to the members of the public. Moreover, Fiat had the concept of upward referral in that the top management had a lot of power. To make the matter worse he had to fully fire 2,000 managers. In the case of Chrysler, he identified 26 young innovative leaders that had to report him directly from the lower levels after top management. This was aimed at flattening the organization. This was to make sure that leadership was inclusive of the young people in the company. The market penetration was very low and there was no product innovation at all.

The only market that was left active was only Brazil as it was its leader. The financial statement for the year 2000 was closed with a red as the company had gone at loss and the company was only operating on loans thus it was a risk of under creditors. On the other hand, in the year 2009, the survival of Chrysler was uncertain as it was turning to bankruptcy. The issue of bureaucracy was the drawback that made it hard to achieve profits in the company. 8 million. Therefore the company re-energized from the top (Bertoldi et al. Pg. Recommendations and Conclusion There has been an exemplary trend within organizations to offer responsibility to teamsto work on main tasks. A good number of companies have come into light that quick service challenges, customer satisfaction as well as quality products is only through coordinating the efforts of the employees (Caputo, 2012.

Moreover, as a leader, it is good to be objective in that when issues turn to tough, investment to stakeholders always paves away to opportunities. The constant analysis also plays a critical role as it tends to indicate the improvements that the company has made or the changes that need to be made. Therefore, from our case above it is quite clear that cultural change within an organization is necessary when needed but in other cases, it is not necessary. Change in leadership and culture of this organization is the one that resulted in the success of the companies (Di Minin et al. Pg. , Frattini, F. and Piccaluga, A. Fiat: open innovation in a downturn (1993–2003).  California Management Review, 52(3), pp. Caputo, A.